Best USD fixed deposits: A comparison of interest rates (July 2021)

Best USD fixed deposits: A comparison of interest rates (July 2021)
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Not sure whether you should put your American dollar into a foreign currency fixed deposit in 2021? We’ve collated a list of the USD time deposit interest rates of the major banks so you won’t need to.

Whether you’re saving up for that big US trip once the travel bubble opens, or are simply looking to take advantage of the competitive interest rates, you can look to foreign currency fixed deposits to safeguard your cash.

What is foreign currency fixed deposits (FCFD)?

Foreign currency fixed deposits, or time deposits, allow consumers to convert their SGD to a foreign currency and deposit it in the bank for a period of time known as the tenure.

The amount is earned with interest at a pre-determined rate and can be taken out only after the maturity date. Doing so will result in a penalty or the loss of any interest that you’ve earned, so be sure that you have enough liquid cash on hand before depositing the amount.

Consumers usually put their foreign currency into time deposits for future use like having cash for when they’re travelling, or paying for overseas purchases with their foreign currency to avoid conversion fees. 

Some investors also turn to FCFDs to hedge against foreign currency fluctuation.

What should I look out for before depositing?

Before depositing your money, it is best to give the bank a call and inquire about their interest rates, since the interest rates are always changing and may not be the most updated on the website.

You should also choose a tenure that you can commit to, which can range from one week to five years. The longer the tenure, the higher the interest rate. On top of that, the amount invested and the foreign currency exchange rate also play a part and affect the final amount that you withdraw after the maturity date.

When you decide to open a foreign currency fixed deposit account, you should check with your bank whether they have a prevailing inter-bank transfer fee that is charged when you deposit your money into the account. At present, banks like Standard Chartered, The Bank of East Asia and HSBC offer free transfer services, while others may charge a handling fee.

Comparison of USD fixed deposits

Here are the respective US dollar fixed deposit rates in Singapore:

Tenure Best interest rate available (p.a.) Minimum deposit
Bank of China 1, 3, 6, 9, or 12 months 0.55 per cent US$500(S$681)
CIMB  1, 3, 6 or 12 months 0.25 per cent U$10,000
Citibank 3 months 1 per cent U$10,000
DBS / POSB 1 – 12 months 0 per cent $5,000
Hong Leong Bank 2 weeks – 12 months 0.45 per cent US$1,000
HSBC 3 months 0.10 per cent US$30,000
ICBC 1 week, 1, 3, 6 or 12 months 0.40 per cent US$500
Maybank 1, 2, 3, 6 and 12 months 0 per cent US$50,000
OCBC 3 or 6 months 0.15 per cent US$5,000
State Bank of India Singapore 1, 2, 3, 6, 12, 18,24 months 0.60 per cent US$5,000
Standard Chartered 6 months 0.20 per cent(0.30 per cent under priority banking preferential rate) US$25,000
The Bank of East Asia 1, 2, 3 or 6 months 0.05 per cent U$100,000
UOB 6 months 0.40 per cent US$20,000

*The annual interest rate is for reference only. The bank’s interest rate will be adjusted from time to time according to market changes. 

ALSO READ: 7 best fixed deposit rates in Singapore (Jan 2021) - DBS, Maybank & more

Bank of China USD fixed deposit (July 2021)

Bank of China USD fixed deposit rate (July 2021)
Interest rate 0.25 per cent 0.40 per cent 0.45 per cent 0.50 per cent 0.55 per cent
Tenure One month Three months Six months Nine months 12 months
Minimum deposit amount US$500 US$500 US$500 US$500 US$500

With tenures ranging from one to 12 months, you’ll be able to choose a tenure that you’re comfortable with. Bank of China offers a spread of competitive interest rates depending on the stipulated time period that you choose, from 0.25 per cent p.a. to 0.55 per cent p.a., the second highest interest rate available of the lot.

With a low minimum deposit of just US$500, you won’t require much funds to reap the high interest rates, though lower deposits will subject you to a lower interest rate.

CIMB USD fixed deposit (July 2021)

CIMB USD fixed deposit rate (July 2021)
Interest rate 0.05 per cent 0.15 per cent 0.20 per cent 0.25 per cent
Tenure One month Three months Six months 12 months
Minimum deposit amount U$10,000 U$10,000 U$10,000 U$10,000

With CIMB, you’ll realise that the interest rates are much higher than those of savings accounts, making it worth your while to store your US dollars there. Tenures range from one to 12 months, allowing you to reap up to 0.25 per cent p.a..

However, the minimum deposit amount of U$10,000 is relatively high compared to the rest, making it less attractive for those who do not have sufficient funds.

Citibank USD fixed deposit (July 2021)

Citibank USD fixed deposit rate (July 2021)
Interest rate 1 per cent
Tenure Three months
Minimum deposit amount U$10,000

Citibank is now offering a promotional interest rate for their USD fixed deposits at a solid 1 per cent p.a., and the highest rate at present. The tenure is at three months, making it an extremely worthwhile deal, though the minimum deposit amount is slightly high at U$10,000.

Do note that the rates are applicable till June 30, 2021, so the rates might have changed.  

DBS/POSB USD fixed deposit (July 2021)

DBS/POSB USD fixed deposit rate (July 2021)
Interest rate 0per cent
Tenure 1 – 12 months
Minimum deposit amount $5,000

Though DBS/POSB ranks as one of the top banks in Singapore, their USD fixed deposit interest rate stands at 0per cent p.a., regardless of your tenure that ranges from one to 12 months.

With such a low interest rate, you’d be better off parking your foreign currency elsewhere, either in a multi-currency savings account or with a robo-advisor.

Hong Leong Bank USD fixed deposit (July 2021)

Hong Leong Bank USD fixed deposit rate (July 2021)
Interest rate 0.05 per cent 0.10 per cent 0.15 per cent 0.20 per cent 0.25 per cent 0.35 per cent 0.40 per cent 0.45 per cent
Tenure Two weeks Three weeks One month Two months Three months Four months Five, Six months Seven – 12 months
Minimum deposit amount US$1,000 US$1,000 US$1,000 US$1,000 US$1,000 US$1,000 US$1,000 US$1,000

Hong Leong Bank offers the most flexible tenures, so you can take your pick from a period of as short as two weeks up to 12 months. This lets you choose a specific number of months that you prefer, without having to commit to the standard three-, six-, nine- and 12-month tenures.

Interest rates are relatively competitive, allowing you to reap up to 0.45 per cent p.a. if you opt for a tenure of seven months and more. The minimum deposit is at US$1,000.

HSBC USD fixed deposit (July 2021)

HSBC USD fixed deposit rate (July 2021)
Interest rate 0.10 per cent
Tenure Three months
Minimum deposit amount US$30,000

From now till July 31, 2021, HSBC is having a promotion for US dollar fixed deposits that applies for new and existing HSBC Jade customers, Premier customers and personal banking customers.

The interest rate prevails at 0.10 per cent p.a., compared to the non-promotional rate at 0 per cent with a minimum deposit of US$30,000 and tenure of three months.

ALSO READ: Understanding interest rates: How you can use it to save even more money

ICBC USD fixed deposit (July 2021)

ICBC USD fixed deposit rate (July 2021)
Interest rate 0.01 per cent 0.02 per cent 0.20 per cent 0.25 per cent 0.30 per cent, 0.40 per cent (via e-banking)
Tenure One week One month Three months Six months 12 months
Minimum deposit amount US$500 US$500 US$500 US$500 US$500

ICBC is now having a USD fixed deposit promotion with competitive interest rates. You can choose a tenure of one week, one month, three months, six months or one year, allowing you to enjoy an interest rate of up to 0.40 per cent p.a. when you use e-banking.

The minimum deposit required is US$500, comparably lower than the others on the list.

Maybank USD fixed deposit (July 2021)

Maybank USD fixed deposit rate (July 2021)
Interest rate 0 per cent
Tenure 1, 2, 3, 6 and 12 months
Minimum deposit amount US$50,000

Ranking the lowest interest rate available at 0 per cent p.a. across all tenures is Maybank, on top of the US$50,000 minimum deposit.

Alternatively, robo-advisors (that also accept USD) can do a better job at growing your funds for you, from as low as $50.

OCBC USD fixed deposit (July 2021)

OCBC USD fixed deposit rate (July 2021)
Interest rate 0.10 per cent 0.15 per cent
Tenure Three months Six months
Minimum deposit amount US$5,000 US$5,000

Those planning on depositing their funds in OCBC will be pleased to know that OCBC is having an ongoing promotion for USD fixed deposits. With a choice of either a three- or six-month tenure, you’ll get to enjoy 0.10 per cent p.a. and 0.15 per cent p.a. respectively, with a decent minimum deposit of US$5,000.

State Bank of India Singapore USD fixed deposit (July 2021)

State Bank of India Singapore USD fixed deposit rate (July 2021)
Interest rate 0.10 per cent 0.15 per cent 0.20 per cent 0.30 per cent 0.45 per cent 0.55 per cent 0.60 per cent
Tenure One month Two months Three months Six months 12 months 18 months 24 months
Minimum deposit amount US$5,000 US$5,000 US$5,000 US$5,000 US$5,000 US$5,000 US$5,000

Offering the second highest interest rate at 0.60 per cent p.a., State Bank of India Singapore (an Indian bank that has an offshore banking license in Singapore) provides one of the greatest chances of making your USD grow by leaps and bounds.

However, do note that the tenure is longer than the rest at 24 months, meaning that you won’t be able to take your money out until the period is up. They also boast a relatively low minimum deposit at US$5,000 that’s affordable for most.

ALSO READ: Cash management accounts with good interest rates and high liquidity in Singapore

Standard Chartered USD fixed deposit (July 2021)

Standard Chartered USD fixed deposit rate (July 2021)
Best Interest rate 0.20 per cent (0.30 per cent under priority banking preferential rate)
Tenure Six months Six months
Minimum deposit amount US$25,000 US$25,000

Good news for those thinking of opening a USD fixed deposit or renewing their existing one with Standard Chartered: The bank is offering a guaranteed 0.20 per cent p.a. on a six-month tenure, and a 0.30per cent under priority banking preferential rate, with a minimum deposit of US$25,000.

Do note that the promotional interest rates are not applicable for online placements, so you’ll have to personally head down to the branch to enjoy the special rates. 

The Bank of East Asia USD fixed deposit (July 2021)

The Bank of East Asia USD fixed deposit rate (July 2021)
Interest rate 0.01 per cent 0.01 per cent 0.01 per cent 0.025 per cent 0.05 per cent
Tenure One month Two months Three months Six months 12 months
Minimum deposit amount US$1,000 US$1,000 US$1,000 US$1,000 US$1,000

Though The Bank of East Asia (a Hong Kong banking and financial services company) offers a range of tenures of one and 12 months, the interest rates only go up to 0.05 per cent p.a. alongside a minimum deposit amount of US$1,000.

With such low rates, your money would fare better in a multi-currency savings account where the rates are usually a lot more competitive.

UOB USD fixed deposit (July 2021)

UOB USD fixed deposit rate (July 2021)
Best Interest rate 0.40 per cent
Tenure Six months
Minimum deposit amount US$20,000

As part of their ongoing promotion from now till July 30, 2021, UOB is offering an interest rate of 0.40 per cent p.a., compared to the usual non-promotional rate at 0.05 per cent p.a. It is amongst one of the better  interest rates that you can earn. The tenure stretches for six months, with a minimum deposit amount of US$20,000.

Which bank is best for USD fixed deposits in Singapore?

If you’re looking for a financial institution that can offer you the highest interest rates, then look no further than Citibank as it has the highest USD fixed deposit rate at 1 per cent p.a. with a minimum deposit of U$10,000 and a decent three-month tenure that you’ll have to commit to.

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For those who have a cap on the amount that they can deposit, both ICBC and Bank of China offer the lowest deposit amount at US$500. Despite this, Bank of China may be the better option since its interest rate can go up to 0.55 per cent p.a., the longer the tenure and higher the deposit, compared to ICBC’s 0.10 per cent p.a. cap.

For more flexibility, Hong Leong Bank has the highest number of tenure options to choose from – from as low as two weeks, to one to 12 months. This allows you to choose a specific time period to accommodate your financial needs, lowering the chances of you withdrawing the funds before the maturity date.

Alternatively, you can opt to stash your cash in multi-currency accounts (with base rates of 0.05 per cent p.a.) that offer a variety of foreign currencies, or park your funds with a robo-advisor to invest on your behalf. Both options typically offer higher returns.

This article was first published in SingSaver.com.sg.

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